Ann: Outstanding Gabanintha Metallurgical Results, page-43

@phuket guy

Have you seen this one. Your across funding for projects and I rate your comments on another share we both hold, would appreciate any insight and opinion you can give on this one if you have time.

Quick run down on their PFS using current resource which is due to be upgraded and extend mine life from current 13yrs to over 20yrs.

Vanadium V2O5 in WA (Australia)

Global resource 119.9mt V2O5 at .8% including 55mt at 1.1%
Indicated 21.6mt at .9%
Maiden reserve was 16.7mt at .96%

Grade coming out at 99.7% and suitable for battery and aeronautical but most demand in sector coming from its application in steel (rebar) and china are the main consumer.

PFS figures based on US$13 per pound current price over US$30 per pound

Post Tax NPV - US$645million (AUD$850)
IRR - 43%

OPEX - US$4.27 per pound (current price in excess of US$30 per pound)
CAPEX - US$285 million (AUD395million)


Current market cap under AUD$30million dollars with less than 100million shares on issue fully dilluted (70million currently tradeable) and approx AUD$7million in the bank to potentially see them thru to DFS which is due June next year.

Expected payback on mine 2.5years at US$13 per pound and under one year if prices stay the same.

Currently talking with potential offtake partners aswell.

I get the CAPEX is sizeable but far from unreasonable given current economics. Wouldn't mind your take on things on how you'd want them to go about funding this thing if you were a holder.

Thanks in advance